Financial Exclusion: Access to Cash

David Linden Excerpts

Tuesday 21st May 2019 Westminster Hall

[David Linden (Glasgow East) (SNP)]

I congratulate the hon. Member for Feltham and Heston (Seema Malhotra) on securing the debate. In my constituency we are fighting two bank branch closures: Santander at Parkhead Forge, and, just recently and most unhelpfully, the Clydesdale Bank, which has announced that it plans to shut the Shettleston Road branch. The Government and the banks would say that the post office network can provide support, but there is a flaw in that argument when we look at the Tollcross post office in my constituency, which has had a temporary closure for two years now. I leave that point with the Minister. We are due to meet tomorrow to discuss it a bit further.

One thing that has most angered me has been that Santander and the Clydesdale Bank both proposed to remove the ATMs as well. Santander had the absolute barefaced cheek to contact me to say, “This is a very well-used ATM machine. Can you help us find someone else to take it on?”, which is laughable. However, ATMs are hugely important to a local economy, and any moves to remove them from the high street or to add charges to them has an impact on people from low-income areas such as my own. In Cranhill and Sandyhills we already see ATMs that now have a charge, which we are taking up with the ATM providers.

Some Members have already touched on the issue of credit unions. Before I entered politics I worked in a credit union, and only last month I chaired the summit of a lot of Glasgow’s credit unions. It is no secret that in Glasgow we have had two credit unions go bust recently: most recently, Parkhead Credit Union. It is all well and good for us in this place to talk about the importance of credit unions, and I would absolutely encourage people to join a credit union. I should at this juncture declare an interest as a shareholder in Cranhill and Baillieston credit unions. There are, as I am sure the Minister knows, issues relating to capital ratios and the governance of credit unions. More often than not when I visit my local credit unions, most of the members of the board are well over retirement age, so if we are talking about the sustainability of credit unions, we need to look at that as well.

The hon. Member for Hitchin and Harpenden (Bim Afolami) touched on the important issue of financial education. He is absolutely right to point out that it is an issue we have spoken about for a long time. If I reflect on my own experiences, it was only in my late teens that I started to really understand budgeting and the importance of financial education. I very much commend Christians Against Poverty, which does really good work supporting people with budgeting. If we are serious about ensuring that young folk make informed decisions about their finances, we need to teach them about such things as APR the importance of ethical lending. One way of doing that is through credit unions. What discussions has the Minister had with Education Ministries across the UK to ensure that we put pressure on Governments across these islands to invest in financial education?

This has been a good debate, and there is clearly an appetite for lots more debate. I hope that the Minister will take the points raised on board.

Oral Answers to Questions

David Linden Excerpts

Tuesday 21st May 2019 Commons Chamber

[Ruth Jones (Newport West) (Lab)]

5. What assessment the Government have made of the effect of the annual tapered allowance on the (a) recruitment and (b) retention of doctors in (i) hospitals, (ii) primary care and (iii) the armed forces.

[David Linden (Glasgow East) (SNP)]

6. What recent discussions he has had with Cabinet colleagues on the NHS pension scheme tapered annual allowance.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

The NHS pension scheme and other public service schemes are among the most generous pension schemes available in this country today. The tapered annual allowance is focused on the highest-earning pension savers to ensure that the tax relief that they receive is not disproportionate to that of other savers. However, I do accept that there is some evidence that the annual allowance charge is having an impact on the retention of high-earning clinicians in the NHS. I am in discussion with my right hon. Friend the Health Secretary about how to provide additional pension flexibility for NHS doctors affected by the annual allowance tax charge, and he will make an announcement as soon as possible.

--- Later in debate ---

[Mr Hammond]

I think I have answered that question, but it is good to hear Labour MPs focusing on the disincentive effect of high taxation, particularly on professionals in our public services. Someone has to be earning £150,000 a year before the tapered annual allowance affects them. I would suggest that perhaps Labour Members who do understand the detrimental effect of very high marginal tax rates on professionals in our public services make those representations to their right hon. Friend the shadow Chancellor, who is intending to raise tax for everybody earning more than £80,000 a year.

[David Linden]

One of the constituents I have in Barrachnie is a consultant who has told me that there are concerns about recruitment and retention. Given that a recent survey shows that 40% of doctors have retired early as a result of pension tax changes, I would urge the Chancellor to look again at this and make as strong a case as possible to the Health Secretary so that he can make sure that we have the staff in the NHS to serve our communities.

[Mr Hammond]

As I have already said, both the Treasury and the Health Department wish to address this problem. We have to find a mechanism that does it in a way that is fair and appropriate. The right way to do it is through increasing flexibilities within the NHS and, potentially, other public sector schemes. My right hon. Friend the Health Secretary will make an announcement as soon as possible.

Billy McNeill MBE

David Linden Excerpts

Monday 20th May 2019 Commons Chamber

[David Linden (Glasgow East) (SNP)]

As the Member with the privilege of representing Celtic Park, I rise to echo the tribute paid to the late, great Billy McNeill by my hon. Friend the Member for Argyll and Bute (Brendan O’Hara), whom I congratulate most sincerely on securing this debate.

For some bizarre reason, there is a strange irony whereby many Scottish MPs do not, in fact, support the club based in their constituency, but I would argue that we are all the richer for that. I declare openly, and perhaps confess, that I am an Airdrieonians supporter. I will return to Billy McNeill’s link to Airdrie in a few moments.

Since being elected as the Member for the east end of Glasgow, I am proud to have had a good relationship with Celtic football club, which is a massive, iconic part of the east end. For those driving along London Road, that towering statue, produced by John McKenna, of Billy holding the European cup aloft is quite a sight to behold, particularly with the thousands of green and white scarves attached to it over the past few weeks.

Following Billy McNeill’s sad passing, it is hard to describe how much of an impact his death and, most importantly, his life have had throughout the city of Glasgow, regardless of people’s age or even which football club they support. As my hon. Friend has already outlined, Billy McNeill will be forever known in history as the first player from these islands to lift the European cup when Celtic triumphed in Lisbon back in 1967.

I would have expected nothing less, but my hon. Friend paid a typically warm and thoughtful tribute to the career and life of Billy McNeill, so I do not intend to repeat much of that. However, when he informed me that he had secured this evening’s debate, he told me—tongue in cheek, I am sure—that I am not allowed to mention Airdrie, a hurdle at which I fell just two paragraphs into my speech.

The link between Billy and Airdrieonians goes back to the Scottish cup final of 3 May 1975 when, unfortunately, Celtic defeated the Diamonds 3-1 at Hampden Park. Following the match, Billy announced his retirement from playing football. It was his 822nd and last appearance for Celtic. Remarkably, in a career spanning so many years, he was never substituted, which is a tremendous achievement for any player. I cannot recall any other player who made that many appearances without being substituted.

As my hon. Friend outlined, Billy went on to have a career in management, with spells at Clyde, Aberdeen, Manchester City, Aston Villa, Hibs and, of course, two spells at the helm of his beloved Hoops. Both on and off the park, Billy made an enormous contribution to the beautiful game, so it is right that so many people from all across the footballing community came together to mourn his passing and remember his life.

And it is not just people of Billy’s generation who wish to mark a life well lived. On Saturday morning, I was at Our Lady of Peace in Barlanark to cheer on St Francis of Assisi Primary School, which went on to win the Billy McNeill memorial cup. It is fitting that the cup was won and retained by a team from the east end of Glasgow. Many of the boys and girls who were playing recognised Billy McNeill’s contribution and seek to emulate it in the years to come.

Tonight, though, has been a fitting tribute to a man who entertained so many and brought so much happiness, as we have heard, particularly to those dearest to him. He will, of course, be sorely missed, but his contribution will never be forgotten, and I am glad that we have had the opportunity tonight to immortalise him in the Chamber and in Hansard. For that, I thank my hon. Friend most sincerely.

Oral Answers to Questions

David Linden Excerpts

Tuesday 9th April 2019 Commons Chamber

[Elizabeth Truss]

I note that a growing list of companies, such as Barratt Developments, Mace Group Ltd and Legal & General, are doing the right thing and taking responsibility for paying for remediation. The Government urge all other owners and developers to follow the leads of those companies.

[David Linden (Glasgow East) (SNP)]

T8.   Housing associations in Parkhead, Tollcross and Shettleston have high levels of tenement stock, and the cost of maintaining it is prohibitive. Will the Chancellor agree to meet me to discuss the case for a modest reduction in VAT to preserve tenement housing, which is a key part of our architectural heritage in Glasgow?

[Mr Philip Hammond]

That is not an issue with which I am familiar, but I should be happy to hear more about it from the hon. Gentleman. Perhaps he would like to write to me in the first instance, setting out the details of his argument.

Section 5 of the European Communities (Amendment) Act 1993

David Linden Excerpts

Tuesday 26th March 2019 Commons Chamber

[Colin Clark]

We are the party of optimism and, on the subject of optimism, I will let a pessimist speak up.

[David Linden (Glasgow East) (SNP)]

The hon. Gentleman spoke earlier about the UK’s high ranking in Forbes magazine. Can he tell us how the UK rates on food bank usage?

[Colin Clark]

That is the difference between the hon. Gentleman and me, because I consider the fact there are food banks to support people to be an example of charitableness. I want to celebrate the success of this country, not the failure, and it is the Conservative party that will make sure this country is a success.

Gambling-Related Harm

David Linden Excerpts

Tuesday 19th March 2019 Westminster Hall

[David Linden (Glasgow East) (SNP)]

It is a pleasure to serve under your chairmanship, Mr McCabe, and I thank my hon. Friend the Member for Inverclyde (Ronnie Cowan) for securing the debate. He has been an assiduous campaigner for the reform of gambling regulations since he entered the House in 2015, and I pay tribute to his work thus far.

This has been an excellent debate, with no fewer than 17 Back-Bench contributions from right hon. and hon. Members—a remarkable figure for Westminster Hall. My hon. Friend spoke about the consequences of debt due to gambling, such as relationship breakdown, anxiety and depression, and he spoke movingly about a young guy, Jack, who sadly took his own life. He spoke about the eye-watering profits of the gambling industry, which have increased by 65% since the Gambling Act 2005, and he touched on the relationship between sport and gambling, particularly in advertising—there is much more to be said on that, but that is probably a different issue for a different debate.

The right hon. Member for East Devon (Sir Hugo Swire) reflected on his time as a shadow Minister in 2005, and he spoke about the move to online gambling and his concerns about offshore regulation—concerns that I share. The hon. Member for Swansea East (Carolyn Harris) is probably my favourite Labour MP in the House, and we rightly pay tribute to her work on the all-party group on gambling-related harm. I look forward to joining that group in its inquiries from next week onwards. She was right to say that we must consider the growth in online gambling. Sadly, legislation does not always keep pace with new technology, and it is important for the all-party group to consider that.

The right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) also reflected on the 2005 Act. He was right that there is overwhelming evidence about FOBTs, and it took the Government and the Gambling Commission a long time to address that issue. I hope that we will not see that again, although I will reserve my judgment.

My hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson)—I think the hon. Member for Strangford (Jim Shannon) referred to her as the “fiery lady”—rightly spoke about the need to move on from self-regulation. It is fair to say that it is no longer appropriate for the gambling industry to mark its own homework, and she made that point powerfully.

The hon. Member for Strangford—my fellow season ticket holder for Westminster Hall—spoke powerfully about the situation in Northern Ireland. I confess that I was not aware of that difference between Northern Ireland and the rest of the UK regarding FOBTs, and I suspect it has something to do with the Stormont Assembly not currently sitting. It would be good to see that issue move on. The hon. Member for Hyndburn (Graham P. Jones) spoke about maintaining momentum and keeping up with the pace of technology, as well as the need to make gambling a medical issue, which I echo. My hon. Friend the Member for Livingston (Hannah Bardell) said that powers to address problem gambling do exist but they are not currently used well, and I share that concern.

The liberalisation of gambling, which was exacerbated by the 2005 Act, has had a profound impact on my community and many of my constituents. Even today on Main Street in Baillieston, three bookies are lined up next to each other, separated only by a fast food shop—not exactly great diversity for a local high street. Many years ago a Channel 4 survey suggested that there were an average of six betting shops for every 100,000 people in an affluent area, but 12 in a more deprived area. My constituency has fewer than 100,000 people—there are around 70,000—yet we have in excess of 35 betting shops. Bookmakers and gambling firms disproportionately target areas of high deprivation, such as my constituency of Glasgow East.

As the hon. Member for St Helens North (Conor McGinn) said, many Members do not have a problem with folk who want to go for the odd punt on the horses. I had an enjoyable evening at a parent council fundraiser race night a couple of weeks ago, and we all accept that, when done in moderation, there is no problem with gambling. My hon. Friend the Member for Inverclyde was right to say that we must focus on the harm caused by gambling, and the vulnerable people whom it impacts, and I am glad we are having this debate.

Public health, and particularly children’s health, must be given utmost priority in these matters, and urgent action should be taken if children are engaging in gambling. As Members have suggested, there is a risk that technology is developing at a pace that we in Parliament do not perhaps keep up with, and that is especially true when it comes to apps. As my hon. Friend the Member for Livingston said, many mobile phone apps are designed to be stimulus-driven, and we know the impact that has on dopamine levels. Earlier this week, the all-party group on social media and young people’s mental health, which is chaired by the hon. Member for Ogmore (Chris Elmore), produced a powerful report on the impact that social media and apps are having on young people, and some of the issues that we are discussing tie in with that.

Having added to the picture that has already been eloquently painted by hon. Members, I would like the Government to commit to radical action in this area, although the recent shenanigans with FOBTs reform lead me to conclude that they are reluctant to take more action on gambling. I would like that legislation to be devolved to Scotland, because I do not want this issue to get left behind. During the debate on FOBTs, I recall the bullying that Members of this House received from the Association of British Bookmakers, and on a public health issue such as this, it is important not to give in to bullying by big industry or lobbyists. We in this House should, quite rightly, tell the Association of British Bookmakers where to go.

I want the Government to take real action on this issue. I have a lot of respect for the Minister, whom I encountered when she was a Whip, as well as in her new role. She was there the day that the statutory instrument on FOBTs was passed, so I will reserve judgment and listen to what she has to say. However, if Westminster will not take action on the issue, my own Government at home in Scotland will. As my hon. Friend the Member for North Ayrshire and Arran said, although we have limited powers to act on the issue, we have not been shy when taking action on the proliferation of FOBTs. If we go back and consider the liberalisation in the 2005 Act, and the problems we have been left with today, we should come to the conclusion that no action is no longer an option. There is cross-party support in this House to get something done, and we look to the Minister for that action.

Oral Answers to Questions

David Linden Excerpts

Tuesday 5th March 2019 Commons Chamber

[Mr Hammond]

I recently visited the north-west of England and saw at first hand the enterprising and enthusiastic spirit of SMEs in the region. I am happy to confirm that, in the 2018 Budget, I backed locally led innovation by doubling the strength in places fund to £235 million. I also committed an additional £5 million to encourage proposals for new university enterprise zones, following a successful pilot scheme that invested £15 million in Liverpool. The made smarter pilot in the north-west is helping manufacturers to adopt digital technologies, and together these measures will ensure that businesses in the north-west can take the lead in the fourth industrial revolution.

[David Linden (Glasgow East) (SNP)]

4. Whether his Department has undertaken an economic impact assessment of extending the national living wage to people under the age of 25.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

The Low Pay Commission recommends minimum wages for the under-25s, such that they are as high as possible while maintaining young people’s employment prospects. We have seen a 45% reduction in youth unemployment since 2010 as a result.

[David Linden]

That is lovely, but it is not actually the answer to the question I asked, which was whether an economic impact assessment had been carried out. Clearly, the answer is no. The Government obviously have an ideological problem with a fair day’s pay for a fair day’s work. Given that this is national apprenticeship week, does the right hon. Lady really think that it is acceptable to pay apprentices just £3.70 an hour in this country under UK law? Will she use the spring statement to take action to introduce a fair day’s pay for a fair day’s work? If she will not, will she devolve this to Scotland so that we can do the job for her?

[Elizabeth Truss]

The reality is that we have been so successful in reducing youth unemployment—which in 2010 was almost double what it is now—because we have taken a reasonable strategy with minimum wages. We have also had a welfare to work programme and helped young people to get experience and skills. It would be completely wrong to raise wages to the extent that young people were unemployed and unable to get the experience and skills that they need to succeed in life.

Draft Securitisation (Amendment) (EU Exit) Regulations 2019

David Linden Excerpts

Wednesday 27th February 2019 General Committees

[David Linden (Glasgow East) (SNP)]

It is always a pleasure to serve under your chairmanship, Mr Hanson. I have a degree of sympathy for the Minister, who I believe is pretty much camped out here in these Delegated Legislation Committees—I am just the latest in the rota of Scottish National party colleagues to cover a DL Committee.

With only a month until the UK leaves the EU, it is frankly a disgrace that the UK Government are only now getting round to sorting out these details. Time is of the essence when we know the UK is due to leave at the end of next month. Scotland’s financial sector has been clear that its interests are best served in the EU single market and customs union. Ten years after the crash, our financial services sector needs meaningful reform, not new problems stemming from Brexit. Instead of planning how to minimise the damage, we should instead be using our time here to plan a successful future inside the EU.

We know that this statutory instrument will not stop the tide of financial services jobs and assets leaving the UK because of Brexit. Financial services firms are voting with their wallets already and have moved assets worth $1 trillion from the UK to the rest of Europe since the Brexit referendum, according to EY. According to Bloomberg, Deutsche Bank AG is repatriating at least €400 billion to Frankfurt, with JPMorgan taking €200 billion, Goldman Sachs €60 billion, CitiGroup €50 billion and Morgan Stanley €40 billion.

We know the impact that these Brexit shenanigans are having on our economy, and I do not think this SI will do anything much to stem that tide of financial services jobs leaving the UK. While I will not be pushing this to a vote, I want to put that on the record. What we see here is a British Parliament and a British Government that are making no sense whatsoever and are not serving Scotland’s interests.

Santander Closures and Local Communities

David Linden Excerpts

Thursday 14th February 2019 Westminster Hall

[David Linden (Glasgow East) (SNP)]

I beg to move,

That this House has considered the effect of Santander branch closures on local communities.

It is a pleasure to see you in the Chair, Mr Davies. I thank the Backbench Business Committee for providing time for the debate and express my sincere gratitude to the hon. Members for North Tyneside (Mary Glindon), for Angus (Kirstene Hair) and for Barrow and Furness (John Woodcock) and to my hon. Friend the Member for Central Ayrshire (Dr Whitford), who all joined me as co-sponsors of the application. Like many other hon. Members, they face the closure of Santander branches in their constituencies. It is a testament to the widespread anger in the House that we have come together on a cross-party basis to campaign against those closures.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

I thank my hon. Friend for giving way so early in his speech, and I am delighted that he has secured the debate. He mentioned the anger, and I want to emphasise that the anger in my constituency has been exponentially increased. When Santander closed its Linlithgow branch last year, it encouraged customers to move to Bathgate—the very branch it is closing this year. That is farcical, and a true betrayal of elderly pensioners, who are less likely to use online banking.

[David Linden]

Absolutely. My hon. Friend makes a powerful point. Many of us share the concern that the present round of closures may not be the last, and he makes the point eloquently.

I acknowledge the fact that senior Santander staff have joined us in the Public Gallery today, and I hope they will take to heart the serious concerns we express on our constituents’ behalf. I should also declare an interest because not only is the Parkhead branch in my constituency earmarked for closure, but I am a Santander customer and it is my local branch.

I am sure there will be some interventions, and I shall be happy to accommodate them to allow colleagues to put their concerns on record. My speech covers four main areas. First, I am concerned for the almost 1,300 Santander staff whose branches are due to be closed, and who face a deeply uncertain future. Secondly, I shall consider the local impact the proposals will have in the east end of Glasgow, where the branch at Parkhead Forge is due to close. Thirdly, I shall address some of the issues about reliance on the post office network. Fourthly, I shall focus on access to cash. Finally, I shall seek support from the Minister in making direct representations to the bank.

As I mentioned, when the closures were announced, my immediate concern was for the almost 1,300 Santander staff in the 140 branches in these islands. I know from speaking to staff at the branch at Parkhead Forge that the announcement on 23 January came as something of a bolt from the blue. When I met Santander executives the following week, I was disappointed to learn that although about a third of the staff may be redeployed, a deeply uncertain future remains for the other two thirds. Given that there are almost 6,000 fewer bank branches and building societies in the UK compared with 2010, those staff cannot exactly just move their skills to another local bank. That is obviously a key problem. Other banks have abandoned high streets and shopping centres, closing thousands of branches and abandoning the customers who stood by them during the financial crash. Abandonment is exactly what Santander proposes in the east end of Glasgow.

Unashamedly, as a constituency MP, I want to use some of my time today to make the case for keeping the Parkhead Forge branch open. I cannot fathom why it was selected for closure, given the widely known demographic issues in the east end of Glasgow. When I met Santander senior staff, I made the point that the Parkhead branch, situated in the busy Forge shopping centre, appears to have a heavy footfall, with customers like me often having to queue before seeing a teller. Frustratingly, I have still not received the transaction and footfall data I asked for from the bank, which makes me question whether Santander has looked at it at all. Surely if the branch were not being used enough, Santander would be content to demonstrate that by releasing the data.

In its initial impact assessment, and somewhat to my surprise, Santander suggests that east end customers should go to their next nearest branch, Rutherglen, which is not actually in Glasgow. The journey could perhaps be done by train. Of course, if Santander had bothered to do more than a mere desktop exercise, it would have realised that Parkhead does not have a train station and that the journey would take well over an hour and mean travelling through Partick, in Glasgow’s west end, which is simply ludicrous.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

The hon. Gentleman makes a good point about the insensitivity of the one-size-fits-all letter that everyone was sent. We are losing two branches in my seat—not only in Acton High Street, which recently lost NatWest and HSBC, but in west Ealing, where we have lost Halifax and Lloyds. Our streets are being turned into ghost towns. The recommendation in Acton was to go to the post office. That has closed too. Where are people meant to go?

[David Linden]

Absolutely. The hon. Lady makes a powerful point. I intend to come on to the recommendation that people go to the post office, because the argument is weak and does not stand up to scrutiny. She is right to point out the mass exodus of banks from high streets. Banks are a major part of the local economy, and it does not do them any good if they abandon the high street.

[Brendan O'Hara (Argyll and Bute) (SNP)]

The closure of the branch in Helensburgh in my constituency means that the nearest Santander branch will be 25 miles away in the west end of Glasgow. I have serious concerns about the so-called impact assessment, which has been carried out only after the announcement. Does my hon. Friend share my fear that it will be little more than an exercise in justifying a decision that has already been made?

[David Linden]

Absolutely. My hon. Friend does a power of work in his capacity as chair of the all-party group on rural poverty. He speaks powerfully about the impact the closure will have in his rural constituency. In my constituency, customers are not quite being asked to go 25 miles, but the point is well made, and I hope the Minister has taken it on board.

[Angela Crawley (Lanark and Hamilton East) (SNP)]

As I outlined in my Adjournment debate on this very subject last week, the impact on rural Lanark will be devastating for the local economy and the high street. Does my hon. Friend agree that banks should do more to consider the economic impact?

[David Linden]

Absolutely. That is one reason why I am delighted to see the hon. Member for Ceredigion (Ben Lake) here for the debate. His private Member’s Bill looks specifically at the impact of such closures, particularly on rural communities. My hon. Friend’s point is well made.

[Graham Stringer (Blackley and Broughton) (Lab)]

The hon. Gentleman is being extraordinarily generous in taking interventions. Does he agree that if local impact assessments are done, they are ignored, and not just by Santander? Banks want to force people into online banking, and the real threat of that is that they will move towards allowing algorithms, not human beings, to take decisions. It is not just the high street that goes, but the personal interaction and the ability to appeal to a human being if things go wrong.

[David Linden]

Absolutely. That fits nicely with the next point I want to make, which is about impact assessments. The bank concedes that only half of the customers who use the Parkhead branch use online, mobile or telephone banking services. The data concerning digital exclusion in the east end is widely available, so it beggars belief that Santander has overlooked it and still plans to pull down the shutters on a branch that serves some of the most vulnerable and isolated people in the country.

I want to turn now to the issue of reliance on the post office network to deliver banking services. Having asked the Minister about it during Treasury questions a couple of weeks ago, I can almost anticipate his response: that Santander customers can just do their banking at the post office. I think my hon. Friend the Member for Lanark and Hamilton East (Angela Crawley) felt frustration about that during her Adjournment debate last week.

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

I have a background in the Post Office. All we see is closure after closure, and now that WHSmith—the worst retailer on the high street—is taking the contract, it could also close post offices. The excuse given by the banks—that if they close down, people can use the post office—needs to be looked at seriously.

--- Later in debate ---

[David Linden]

Absolutely. The hon. Gentleman, my constituency neighbour, hits the nail on the head. There are flaws in the argument that the post office network can just replace local banking services.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

My hon. Friend is making a great speech. The branch on Renfrew High Street in my constituency is also earmarked for closure, and Santander suggested that customers use the post office network or the branch in Paisley. However, as many people will know, given the representations we have made, the fees the banking industry and Post Office Ltd pay postmasters to carry out this function are ridiculously low and unsustainable. The contracts are currently being renegotiated with the banks. Does my hon. Friend agree that the banks need to step up to the mark and pay post offices fairly for carrying out their banking functions?

[David Linden]

That is an excellent point, and one I intend to come on to later. My hon. Friend has been a doughty campaigner on this issue, not only in terms of post offices, but in fighting a good campaign against the Royal Bank of Scotland closures in Renfrew, and we should pay tribute to that.

[Brendan O'Hara]

My hon. Friend is being incredibly generous in giving way. Before we move on from the role of the Post Office, I would like to share some information I received this morning. In a letter to me on 24 January, Santander assured me that it was working closely with post offices near closing branches to keep them informed and supported. This morning, the Post Office wrote to me saying that, due to commercial sensitivities, Santander does not share customer numbers with it, and therefore that it

“is exceptionally difficult to model the impact…on any given branch without having information on numbers and amount of cash withdrawals”.

Does my hon. Friend share my concerns about the veracity of an impact assessment that encourages customers to use the Post Office’s services, when Santander does not even share basic information with it?

[David Linden]

Herein lies the issue that hon. Members on both sides of the House want to raise today. The Government’s line so far has been, “Oh, well, it’s fine—we’ll just shunt this issue on to the Post Office.” I am grateful that a number of hon. Members are homing in on the question of the Post Office, because that is the key weakness in Santander’s argument. First, there is a capacity issue because, given the rate at which banks are closing, we are expecting post offices to adapt to a significantly higher number of counter transactions within the same constraints as previously.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

I am sorry to interrupt the hon. Gentleman yet again. I completely understand why the focus of this debate is on Santander, but from the point of view of the Government’s response, is Santander not taking the hit for a whole range of other brands that have been gradually leaving the high street over the past few years? Santander is almost the last man standing, so it is getting more adverse attention than it perhaps deserves. The blame the hon. Gentleman rightly attributes should be spread across all major banking brands and not just attached to this one.

[David Linden]

The hon. Gentleman is right that other banks have been complicit in abandoning our local communities. I do not know whether he is due to lose a branch in his constituency, but the vast majority of hon. Members here are. As constituency MPs we have the right to come here to challenge not only the UK Government but Santander, which is planning to abandon our communities. I think we are spot on to be tackling Santander.

[Ged Killen (Rutherglen and Hamilton West) (Lab/Co-op)]

I thank the hon. Gentleman for being so generous in giving way. On the point he made about abandoning communities, there are two former bank branches currently lying empty in my constituency, and there is about to be a third. Does he not think that banks leaving high streets owe it to their customers to invest in the community again in some form, whether by helping to get a new tenant into the closed branches or by providing some other investment in return for the loyalty they have been shown?

[David Linden]

I am grateful to another constituency neighbour for making a powerful point. It is great that the hon. Gentleman is here, because, with the planned closure of the Santander branch in my constituency, people have been moved to the one in his. The point that my hon. Friend the Member for Linlithgow and East Falkirk (Martyn Day) made was that, even if certain branches—such as the one in the hon. Gentleman’s constituency—have been saved this time, that does not mean they will not be at risk in future, so I am glad he is here to make his point.

[Angela Crawley]

My hon. Friend has been an absolute champion for his constituency in this campaign. Does he agree that post offices simply cannot provide the same level of service as a bank branch, and that it is insufficient for the Government to use post offices as some sort of response? If it is not Santander, it is every other bank abandoning the high street, and post offices simply cannot provide the same service.

[David Linden]

That is spot on, because there is a question of sustainability for postmasters. We know that a huge number of previous Crown post offices have been transitioned to franchise partners, and we are seeing evidence that those partners may no longer find the offering attractive. Interestingly, Martin Kearsley, the banking director of Post Office Ltd, gave evidence to the Treasury Committee. When questioned on whether the Post Office makes a profit by offering basic banking services on behalf of providers, he answered:

“It does not currently. We are in discussions with the banks to change that position…What we do is charge the banks for the provision of the network and the transactions their customers do with us. We then share that model with our postmasters.”

We know that profitability is an issue for postmasters, but it is not the only one. When questioned about the fairness of postmasters having to offer banking services, Mr Kearsley said:

“we have seen a huge increase in the amount of cash coming into our branches. That is challenging, we recognise that and we are working hard to address it. That means postmasters spend a lot of time counting cash. We have provided new equipment to try to help. We have modernised and streamlined the processes, so that that can be done more effectively and rapidly, but we recognise that that is a challenge for them right now and we continue to innovate to fix those problems.”

The question is how on earth we can reasonably expect the post office network to pick up the slack from banks that have abandoned their customers, when the current model is demonstrably not sustainable.

That leads on to the question of the level of service provided. Although many everyday banking transactions can be completed at post offices, there are restrictions on what can and cannot be done. There are limits on deposits and withdrawals, for example. Currently, only 5% of consumers withdraw cash, and 2% deposit cash, primarily at a post office, and there is anecdotal evidence from Citizens Advice to suggest that level of service may be a major factor in that.

The lack of regulation is also concerning. While banks are regulated by the Financial Conduct Authority, the Post Office is not. Banking customers are not necessarily Post Office customers, so the same duty of care simply does not exist. Let us face it: franchise holders are in this to make a living, and banking is not profitable for them. When staffing and training costs are factored in, banking can be loss-making for post offices. All things considered, while I am sure that some postmasters will go above and beyond, they are certainly not compelled or incentivised to do so.

When all is considered, it is little surprise, then, that post offices suddenly close. There are 35 fewer permanent post offices in Scotland today than there were in 2011. On top of that, communities continue to be plagued by temporary closures. In my own constituency, Tollcross post office closed in December 2017. Although the Post Office calls it a temporary closure, in reality it has still not found someone willing to take the service on, 14 months later. That is just one community suddenly left without service.

In the neighbouring constituency of Rutherglen and Hamilton West, I gather that the post office in Rutherglen closed suddenly without explanation last June, leaving thousands of people without service in what is a highly populated area with a busy high street. In the Glasgow North West constituency, the Dumbarton Road post office closed suddenly in November last year, with local residents left in the lurch ever since. When these offices shut, there is no replacement service. The Post Office does not offer a mobile service in the interim. There is no universal service obligation in place to ensure that an alternative service is offered on a temporary basis while the problem is fixed. In reality, communities are simply left without.

[Ben Lake (Ceredigion) (PC)]

I congratulate the hon. Gentleman on securing this important debate. He makes the good point that when branches close, there are often no alternative sources for people to access cash and banking services. My hon. Friend the Member for Carmarthen East and Dinefwr (Jonathan Edwards) fully supports the hon. Gentleman’s endeavours, but unfortunately he is engaged in the debate in the main Chamber. My hon. Friend has seen, just as I have in Ceredigion, that when branches close, the post office network is often simply not there, and communities are left in the lurch.

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[David Linden]

I know the hon. Gentleman has had experience of banks fleeing his constituency, where the local economy was already quite fragile, so he is right to put that on record. It is great to hear that input from him and from his colleague the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards), because Wales is also seeing this happen.

While banks will point to the post office as a convenient replacement when they bail on communities, post offices certainly cannot be relied on to bail out the banks. I understand that banks need to look at economic viability when deciding whether to keep branches open, but they cannot fully replace a critical service with something that does not provide the same level of service and that cannot guarantee that it will even be able to keep its own doors open.

[Brendan O'Hara]

My hon. Friend is making a powerful case, and he is right to point out the lazy assumption that the post office will always be there to pick up the slack. I know for a fact that that is not true: in my constituency, in the village of Tighnabruaich, the post office ran out of money, and pensioners could not pick up their pensions last month. The postmistress did everything she possibly could to mitigate the circumstances, but while they were unusual, they were not unique, and they will be repeated time and again if we allow banks to assume that post offices will be there at all times to pick up the slack.

[David Linden]

Absolutely. Such is my friendship with my hon. Friend that we share a psychic bond. He probably knows that I will come on to speak about access to cash.

The Access to Cash Review’s interim report from a couple of months ago makes quite stark reading. Despite more and more services becoming cashless, approximately 8 million people—around 17% of the UK population—say that cash is an economic necessity for them. However, that 17% is not evenly spread. Scotland is much more open to economic damage from the transition to a cashless society than other parts of the UK. The statistics show that cash use in London declined by around 8.5% in the 2017-18 financial year, compared with only 3.3% in Scotland. Scotland is still much more reliant on cash, and it is therefore vital that we are not pushed to become cashless at the same pace as other parts of the UK. Quite frankly, that cannot and should not be forced on people, particularly some of our older, disabled or more vulnerable people.

[Catherine West (Hornsey and Wood Green) (Lab)]

As a London MP, I would like to see the figures broken down by ward. I am sure we would find that everyone uses a card in central London, for example, whereas many people in my constituency still rely on cash.

[David Linden]

That is a powerful point. I suspect that if we broke those figures down, we would see a different situation in Kensington and Chelsea from that in Hornsey and Wood Green. That point was well made.

Research published this week by the consumer champion Which? found that 339 Scottish bank branches have closed their doors since 2015. However, we need to remember that this is not only about branches closing. When banks leave, they all too often take cash machines with them, and at this stage I pay tribute to the hon. Member for Rutherglen and Hamilton West (Ged Killen), who I know has done a lot of work on the situation around ATMs.

The rate of loss of cash machines across the UK should alarm us all, with LINK reporting that the UK lost more than 2,500 free-to-use cash machines last year. Financial exclusion is soaring and is fuelled by the transition from cash, hitting certain sections of society harder than others. For example, I regularly make home visits to constituents with physical disabilities, who tell me they rely on taxis for their freedom. I do not know what it is like elsewhere in the UK, but few taxi companies in Glasgow accept card payments. I also still encounter many constituents who have had a struggle even to open a bank account in the first place, so we really cannot assume that everyone has a debit card. Some of these people will quite simply lose quite a big element of their freedom if they lose easy access to their cash. Others might even be driven to high-interest credit cards or pre-pay debit cards that charge people a fee simply for accessing their own money.

Mental health is also all too often overlooked. The Money and Mental Health Policy Institute report “Seeing through the fog” contains startling testimonies from people with mental health problems. One says:

“I find doing things face to face much easier and better for me. I hate doing things over the phone and can get quite anxious when doing so…I don’t trust online banking and will avoid this for as long as I can.”

Another says:

“I can’t handle the internet, I need human contact.”

Another respondent says:

“I need to see a person. I can’t cope with all this online banking stuff.”

It is little wonder that the institute’s evidence to the ongoing Treasury Committee inquiry into access to financial services concluded:

“Bank branch closures may particularly disadvantage people with mental health problems who struggle with remote methods of communication and rely on face-to-face support from firms to manage their finances.”

We cannot ignore people like this as society moves away from cash, and we certainly cannot treat them as collateral damage in the march of progress.

We have heard time and again that the UK is sleepwalking into becoming a cashless society, but that is no longer the case, because the evidence is there. We are here to discuss the issue today, and Ministers should listen and react, because we cannot afford to sleepwalk.

[Simon Hart]

The closure in my community of one high street bank, and the removal of its cash machine, had a profound effect on the profitability of other businesses within just a couple of hundred metres, which rely on cash circulating. They noticed within a day the negative impact of that development.

[David Linden]

The hon. Gentleman is spot on and really hits the nail on the head. That point was made to me by the Federation of Small Businesses. The reality is that someone going out to buy a couple of rolls and a newspaper will probably not want to tap their debit card to pay; they will want to use cash. If millions of people are left behind in the move away from cash, I am afraid that the blame will lie squarely at the feet of the Government.

That brings me to my final point, which is a direct appeal to the Minister. I do not think that the Government and Ministers can sit back and say that this is a commercial decision for the bank. Put simply, allowing banks to bail on our communities has a detrimental impact on the economy, which should concern the Government. When the Minister gets to his feet later, I want him to address some of the fundamental concerns I have raised, and which others will doubtless also raise, about how these planned closures will have such a detrimental impact on our economy.

[Dr Huq]

The hon. Gentleman talks about internet transactions and shrivelling high streets. Does he agree that another solution for the Government is to look at business rate reform? The transitional phasing system means that places like Stockport subsidise the City. Businesses tell me that re-evaluations should be more frequent than every five years. In fact, a consortium of 40 retailers, including WHSmith, which has been mentioned, and River Island, whose head office is in Hanger Lane in my seat, is campaigning for that reform. Does he agree that it would be a good idea for the Minister to meet those 40 retailers?

[David Linden]

Absolutely. As a Scottish National party politician, I am more than happy to talk about business rates, given that my party has lifted 100,000 small businesses in Scotland out of paying them. If the hon. Lady wants a debate on that, I am happy to talk about it.

Finally, my parting message goes to Santander itself. If it proceeds with these closures, Santander customers like myself will be forced to consider abandoning it. The message from all of us in this Chamber, I am sure, is crystal clear: save our Santander.

[Several hon. Members rose—]

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[Jim Shannon (Strangford) (DUP)]

This is an important issue for me. I thank the hon. Member for Glasgow East (David Linden) for securing the debate and thereby giving us a chance to contribute. Let me also put on the record my congratulations to Scottish National party Members for continually raising issues about bank closures. Every time they have brought such debates to Westminster Hall or the main Chamber, it has come from their constituents. I thank them for highlighting bank closures, because, in doing so, they illustrate how important the banks are, including in my constituency.

I have a real issue with banks closing branches and leaving the most vulnerable in our society without access to their cash and savings. It is all well and good to say that the number of transactions carried out at Santander branches fell by 23% over the past three years, while transactions online and on mobile phones soared by 99%, but that does not say that staff members have been pushing to get that figure up, as I am sure they have.

In the last few months, the Santander branch in Newtownards, which is the major town in my constituency, moved less than 100 yards from Conway Square in the centre of town to the High Street. It has a considerable customer base and very good connections and contacts with the commercial sector. At a Santander event at the branch before Christmas, I met a young lady who was there alongside Santander to state how well it had helped her to start her business from home. That is an example of how things can be done. I put that on the record, because Santander in Newtownards is obviously in touch with its customer base. It is not one of the three branches closing in Northern Ireland.

On bank closures, the fact that a large amount of people use internet banking tells a story, but does it say that they will cease to use their local branch? I do not believe it does. They will still use the branch for all the necessary things, but now they will have to go for miles to find new branches.

The hon. Member for Rutherglen and Hamilton West (Ged Killen), who has left, unfortunately, tabled early day motion 2057 on access to cash. I was more than happy to sign that early day motion, as I always am on important issues. As I have said in other debates here and in the main Chamber, I understand how important it is to have access to cash. I am one of those old-fashioned guys who likes to pay their bills by cash—perhaps that is the economy in Northern Ireland.

[David Linden]

The hon. Gentleman is doing himself down. It is not just an old person thing—not that he is old. Perhaps I should not be saying this from a security point of view, but for about 10 years, since I have been married, I have operated on a jam-jar basis where I take my money out at the beginning of the month and then I have my shopping budget and my fuel budget. I wanted to put that quaint point on the record.

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[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Rosindell. I pay tribute to my constituency neighbour, the hon. Member for Glasgow East (David Linden), for securing this debate. He spoke very powerfully about the impact that these bank closures will have on the city of Glasgow and further afield.

As I listened to my constituency neighbour’s comments, I reflected on the picture in Glasgow. By my calculation, there are five Santander branches in the city of Glasgow, yet the two that have been earmarked for closure are in Springburn in my constituency and in Parkhead in the hon. Gentleman’s constituency. They just happen to be the two worst areas of Glasgow for social multiple deprivation, which leads to me to look at the wider programme of branch closures. In the last four years there have been four branch closures in my constituency, including two run by the Royal Bank of Scotland—one in Dennistoun and the other in Possilpark, directly opposite my constituency office—and the Clydesdale Bank in Springburn, just around the corner from the Santander branch that is earmarked for closure. The only branches left will be the TSB in Dennistoun and in Springburn. We are down to some of the last banks in the poorest communities in Scotland, which is a great tragedy. What does it say when we extrapolating that observation across the country?

Of the five branches in Glasgow, the ones in Shawlands, Byres Road, Argyle Street and Sauchiehall Street are staying open. They are in quite prosperous parts of Glasgow, and I think they are staying open simply because the current accounts held at those branches are much more valuable to the bank. It is profit-seeking behaviour, and there is no legislative imperative for the bank to correct it. The bank will therefore seek to maximise profit at the expense of its customers.

[David Linden]

There was a point that I omitted from my speech due to time constraints. One of the things that I learned from speaking to the staff was that we had a mortgage adviser in Parkhead. Given that they were not doing a roaring trade, apparently they were taken out six months before the decision to announce the plans for closure. That absolutely backs up the hon. Gentleman’s point: these decisions are made entirely on the basis of profit rather than on serving the people who live in those communities.

[Mr Sweeney]

I accept that observation. To be fair, my interaction with a physical branch is limited, because I have adopted new technology—I suppose it is because I am a millennial. I use the banking app for TSB, despite some recent difficulties with the transfer from Lloyds TSB using the banking technology. The only time I visited a branch for any substantial business was when I took out a mortgage in Dennistoun about three years ago. The hon. Gentleman makes the point that if we are going to cut the cloth, we will create almost a self-fulfilling prophecy by stripping out key banking services such as mortgage provision, which is a great problem.

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[John Glen]

I am doing all I can to work towards a situation where the best credit unions can see a way to grow and to provide more. The money from dormant assets can be used to help them grow.

[David Linden]

I am grateful that the Minister is talking about credit unions. The only major job I have done other than being a politician was to work in a credit union. On Monday I have a meeting with a local credit union that is pretty much on the brink of bankruptcy. Part of that is because of a lack of succession planning in the credit union movement and a culture issue about governance. If the Minister is so keen on working with credit unions, what practical support will the UK Government provide, specifically for governance and succession planning issues that challenge them? It will not be just that credit union in my constituency.

[John Glen]

I am anxious not to make my response completely about credit unions, but the 146 credit unions that exist have a whole range of governance models and levels of confidence about the future. I do not think it is my role to dictate how they change, but I am trying to find a model—there are many in Northern Ireland, as the hon. Member for Strangford (Jim Shannon) will know—that can be used as a viable alternative.

I want to move on and make a little progress if I may. I said I would respond to the hon. Member for Barrow and Furness (John Woodcock).

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[David Linden]

Thank you very much for calling me, Mr Rosindell. You have taken over in the Chair since I opened the debate. It is a pleasure to see you in your place; thank you for chairing the remaining proceedings.

Westminster Hall debates on a Thursday afternoon tend not to be the best attended, so the fact that no fewer than 29 Members took part in this debate highlights the seriousness of this issue. I was reflecting that when the votes are called in a little over half an hour, we will return to the main Chamber and go our separate ways into different Division Lobbies. The fact that we have come here on a completely cross-party basis and spoken with one voice is incredibly powerful. The House is at its best when we come together and speak with one voice, and I am pretty certain that today we have spoken with one voice. I know that Santander are in the Gallery. I hope not only that have they been listening but that they will act and save our Santander.

Question put and agreed to.

Resolved,

That this House has considered the effect of Santander branch closures on local communities.

Oral Answers to Questions

David Linden Excerpts

Tuesday 29th January 2019 Commons Chamber

[Robert Jenrick]

We have made more than £1.5 billion available to reduce the impact of business rates on smaller retailers. At the Budget, we provided a 30% discount for small retailers, which will have a huge impact in my hon. Friend’s constituency. We have the £675 million future high streets fund, and we are also bringing forward planning reforms to make it easier for small businesses and entrepreneurs to change the use of their shops and restaurants.

[David Linden (Glasgow East) (SNP)]

T9. Last week, in an absolute hammer blow to the east end of Glasgow, Santander announced that it was closing the Parkhead branch and abandoning the east end. So when I meet Santander bosses this afternoon, can I have the UK Government’s support in saying that they should keep our branches open, rather than waffle about post offices? Will the Minister give a clear, unequivocal message at that Dispatch Box to save our Santander?

[John Glen]

What I can tell the hon. Gentleman is that banks must make commercial decisions on the basis of what works for them. When I visited Scotland, I found they were also keen to work with post offices and the Government’s provision to make sure that services can be delivered through the Post Office.